1/20/2026 Market Commentary

Live Cattle: Live Cattle futures spent the day on both sides of steady but finished the day higher across all months. Live Cattle opened the day higher, but fell victim to sharply lower equity markets for the first few hours of trade. The general consensus across the industry was that the cattle complex would see a nice recovery today after Friday’s lower trade due to rumors of Screwworm being found in the United States. During the overnight trade, the equity markets traded sharply lower as trade tensions continue to rise as President Trump threatened tariffs on several European countries. The lower equities created slight head winds for the cattle market this morning, but eventually the bearish sentiment wore off. Last week’s cash market was a disappointment compared to early expectations but was mainly steady with the week prior. Boxed beef was mixed this morning with choice being quoted $1.99 higher at $366.32, while select was $0.79 lower at $359.54. This will be the first full week of slaughter without Tyson’s plant in Lexington, Nebraska. There will most likely not be a noticeable change in weekly slaughter as most of those cattle have been shuffled to other Tyson plants.

Feeder Cattle: Feeder Cattle futures struggled to work higher today but eventually did find support mid-morning and finished the day over a dollar higher in most months. The CME Feeder Cattle index was quoted lower today after the lower futures market on Friday. Through Monday’s sales, the index is currently at $368.94 with the daily number for Monday at $360.49. Demand for cash Feeder Cattle remains high with a smaller herd size and cheap feed stuffs for feedlots. The USDA will release their monthly Cattle on Feed Report at 2 p.m. on Friday. Estimates are for cattle on feed to be 3.2% less than a year ago, placements to be down 7.3% and marketings to be 1.7% larger.

Lean Hogs: Lean Hog futures traded to new contract highs in many months today as the cash fundamentals continue to work higher. Open interest within the complex continues to increase which would suggest that new fund buying is hitting the market and helping support the deferred contracts. Although the cash and cutout markets have worked higher, the futures have now priced a premium into the futures contracts. The current Lean Hog index is at 81.76 while the nearby February futures contract is at 87.850, a 6.09 premium. The February contract will expire the middle of February and the two will need to consolidate by then. The pork cutout has settled into the $93 area the past few weeks after pushing to multi-month lows two weeks ago.

Corn: Corn futures spent most of the day lower and finished the day mixed with the nearby months lower and the deferred contracts slightly higher. The market continues to digest the increased amount of bushels that the USDA added last week in their WASDE Report. Now that the report is behind us, the market will search for news to trade going forward. South American weather will begin to be more of a focal point heading into the month of February as the market looks for bullish catalysts. Weather patterns and moisture levels differ across both Brazil and Argentina, but as a whole, the crop looks to be very large.

Closing Prices

Market Month Last Change
Corn Mar 423.75 1.00
CHI Wheat Mar 510.25 7.75
KC Wheat Mar 523.00 4.25
Soybeans Mar 1053.00 4.75
Soy Oil Jan 50.76 0.02
Soy Meal Mar 291.60 1.60
Live Cattle Feb 232.375 0.225
Feeder Cattle Jan 362.625 0.700
Lean Hogs Feb 87.850 0.425
Crude Oil Feb 60.31 0.87
Ch Cutout 366.32 1.99
Sel Cutout 359.54 0.79
Feeder Index 368.94 0.48
Pork Cutout 93.63 0.03
Dollar Index 98.559 0.8340
DOW 48,496 863
National Corn Basis -35.67 0.21
National Bean Basis -68.04 0.17

Dates to Remember

January 23- Cattle on Feed Report

January 29- January Feeder Cattle Expiration

January 30- Cattle Inventory Report

Hog Fundamentals

Current One Week Ago Change One Year Ago Change
Lead Month Future 87.850 84.625 3.225 81.125 6.725
National Cash 74.78 68.08 6.40 79.17 4.39
Index 81.00 80.60 0.40 81.46 0.46
Cutout 93.63 93.10 0.53 92.31 1.32
IA/SMN Cash 75.50 70.55 4.95 80.39 4.89
IA/SMN Weights 296.70 295.50 1.20 292.20 4.50
Slaughter 2,623,000 2,683,000 60,000 2,618,934 4,066

Cattle Fundamentals

Current One Week Ago Change One Year Ago Change
North Cash 232.83 210.39
South Cash 232.92 202.36
North Steer Basis 0.00 5.52
Choice Boxes 366.32 358.02 8.30 333.16 33.16
Select Boxes 359.54 359.01 0.53 319.44 40.10
Spread 6.78 -1.02 7.80 13.72 6.94
Carcass Weights 905 894 11 881 24
Slaughter 562,000 553,000 9,000 601,259 39,259
FC Index 368.94 369.12 0.18 278.02 90.92

Cash Cattle Markets

Region This Week Last Week Last Year
TX/OK/NM N/A $201.40
KS $232.92 $202.36
NE $232.83 $210.39
IA/MN $232.11 $210.46

CFTC Disaggregated COT Report

As of: 1/13/2026
Commodity Current Managed Money Change Current Producer/Commercial Change Total OI Total OI Change
Live Cattle 101,316 6,555 -160,170 8,327 328,103 324
Feeder Cattle 16,308 530 -10,315 362 77,244 259
Lean Hogs 82,624 766 -148,035 5,023 325,674 6,380
Corn -81,774 65,348 -177,958 58,837 1,669,075 13,069
Soybeans 12,961 44,756 -166,730 45,159 831,730 5,478

Live Cattle Markets

February Live Cattle finished the day slightly higher. Resistance is at the 20-day MA of 233.075 and then last week’s high of 237.550. Support is at Friday’s low of 229.250 followed by 227.550.

Feeder Cattle Markets

March Feeder Cattle recovered from Friday’s sharp day lower. Resistance is at last week’s high of 365.000 and then 370.675. Support is at 355.300 followed by 353.650.

Lean Hogs Markets

February Lean Hogs pushed to new highs for the move today. Resistance is at that high of 88.775 and then 89.925. Support is at 87.600 followed by the 20-day MA of 85.550.

Corn Markets

March Corn had a quiet day and finished the day slightly lower. Resistance is at Friday’s high of 427 1/2 and then the 20-day MA of 438. Support is at 420 followed by last week’s low of 417 1/4.

This material should be construed as the solicitation of an account, order, and/or services provided by Producers Commodities LLC, NFA ID: 0355787 and represents the opinions and viewpoints of the author. It does not constitute an individualized recommendation or take into account the particular trading objectives, financial situations, or needs of individual customers.  Additionally, this material should not be construed as research material. The trading of derivatives such as futures and futures options may not be suitable for all investors. Derivatives trading involves substantial risk of loss, and you should fully understand the risks prior to trading. Past results are not necessarily indicative of future results. Producers Commodities LLC is not responsible for any redistribution of this material by third parties, or any trading decisions taken by persons not intended to view this material. Information contained herein was obtained from sources believed to be reliable, but its accuracy, timeliness, and/or completeness cannot be guaranteed. Contact designated personnel from Producers Commodities LLC for specific trading advice to meet your trading preferences or goals.

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